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What is the Difference Between a Manufactured Home and a Modular Home?
We are often asked this question and it is a good one. With today’s advances in the factory built construction industry, it is often difficult to tell the difference between a manufactured home and a modular home. This page is designed to clarify those distinctions.
Simply put, a manufactured home is a building which is built in a factory and remains on its transport frame throughout its useful life. The truck simply backs into the final resting place and unhooks and drives off. On the other hand, a modular structure is built in a factory and place onto a transporter just for the purpose of getting it from the factory to the site. It then must be lifted off the transport trailer by a crane and set upon a permanent foundation. The transport frame is then returned to the factory with the truck. Although manufactured homes do come in double width units, they are never more than two boxes and never have a second story. Conversely, a modular building can be any number of boxes. Most homes will ship in multiples of two boxes. A standard colonial style home would likely by four boxes.
The following table will help to summarize the distinctions between modular and manufactured homes:
| Characteristic |
Manufactured Home |
Modular Home |
| Transportation Method |
Transported on non-removable steel chassis which remains a structural part of the home. |
Transported on a removable transporter. Transporter frame is not a part of the home and provides no structural support. Home must be placed on foundation with crane. |
| Regulatory Codes |
Federal Codes only. (HUD) |
Local and State Codes |
| Restrictive Covenants |
Some communities have restrictions on the placement of manufactured homes. |
Modular homes rarely have restrictions on their placement in the community. |
| Common placement arrangements |
Manufactured homes are often placed on property owned by others such as in parks. The land where the home is installed is normally leased by the property owner. |
Modular homes are permanent in nature and once in place are never moved. Therefore, they are normally placed on private property. The exception might be a townhouse, condominium or apartment style modular building. |
| Lender’s View |
Manufactured homes are considered in a separate lending category for loans and mortgages. |
Modular homes are considered the same as single family stick built dwellings. |
| Permanence |
Although required to be secured to the ground, manufactured homes are considered removable and re-locatable. |
Modular homes are not re-locatable and are considered a permanent structure once finally placed upon the foundation. |
| Cost |
Although no specific quantitative information is readily available on this subject, manufactured homes are typically less expensive than modular homes. |
Usually more expensive than manufactured homes. |
For more information about manufactured housing versus modular building, we suggest that you contact some licensed manufacturers of each type of structure.
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